Russia’s gold producer PJSC Polyus plans to exercise its right to buy out of RT Business Development’s 22% stake in SL Gold, the holder of the Sukhoi Log deposit and licence, for about $128.2m.
The move will increase Polyus’ interest from 78% to 100% in Sukhoi Log located in the Bodaybo district of the Irkutsk region.
In December 2016, Polyus’ subsidiary JSC Polyus Krasnoyarsk, which held 51% in SL Gold, signed cash option agreements with RT to acquire a 23.9% stake in SL Gold for approximately $138.9m.
The option agreements were agreed to be exercised during 2017–2022. For a 10.7% participation interest in SL Gold, the outstanding instalments stand at approximately $62.5m.
However, in 2017-2020, Polyus exercised its option to acquire a 13.2% stake in SL Gold for approximately $76.4m.
In July 2017, JSC Polyus Krasnoyarsk signed additional option agreements with RT to acquire an additional 25.1% interest in SL Gold for approximately $145.9m, which is payable in Polyus’ shares during 2017-2022.
Polyus acquired a 13.8% stake in SL Gold for $80.3m, which were paid in Polyus’ shares in 2017-2020. For 11.3% stake in SL Gold, the outstanding instalments amount to $65.7m.
Polyus to purchase 11.3% interest in SL Gold for $65.7m in cash
As per the latest deal, JSC Polyus Krasnoyarsk and RT have agreed to amend the terms of options relating to RT’s stake in SL Gold that was signed in July 2017.
This allows Polyus to purchase 11.3% participation interest of RT in SL Gold for $65.7m in cash, instead of initially agreed Polyus’ shares.
In a press statement, Polyus said JSC Polyus Krasnoyarsk and RT have agreed to: “accelerate the exercise of all outstanding Polys’ call options relating to RT’s interest in SL Gold (including the Amended Options) as a result of which Polyus will buy-out RT’s entire stake of 22% in SL Gold for $128.2 million, all payable in cash.”
